The Impact of Corporate Culture and CMS: A Cross-Cultural Analysis on Internal and External Preventive Effects on Corruption

Description

Entering developing markets, companies are challenged by various cultures and widespread corruption. This book is a cross-cultural survey that explores the crime preventive effects of corporate cultures and compliance management systems (CMS) in China, India, Russia and Germany. Almost 2,000 managers anonymously reported about the compliance programs in place and cultures in their companies as well as on their experience with corruption at work and in everyday life.Despite differences across countries, results suggest that the elements of an integrity-promoting corporate culture are similarly important in their corruption preventive effects. The second major result is that a CMS can develop its effectiveness only when combined with an appropriately practiced integrity-promoting company culture. Third, companies can counteract the negative external influences of a corruption-prone national culture. Moreover, spill-over effects of an integrity-promoting company culture can make an important contribution to national cultural change. For this reason, an integrity-promoting corporate culture is a contribution to corporate social responsibility. Preface References Contents About the Authors Chapter 1: State of Research and Methods 1.1 State of Research and Methods 1.1.1 Previous Study in 2015 1.1.2 Selection and Representativeness of the Sample 1.1.3 Description of Sample 1.1.4 Analysis Methods Applied References Chapter 2: Cultural and Structural Conditions of Corruption 2.1 State of Research 2.1.1 Prevalence of Corruption on a Country-by-Country Basis 2.1.2 Cultural Orientations of the Countries 2.1.3 Trust in Central Institutions 2.1.4 Social Control and Whistleblowing Culture 2.1.5 Knowledge of the Law and Acceptance of the Prohibition of Corruption 2.2 Descriptive Results 2.2.1 Prevalence of Corruption 2.2.2 Corruption Immunity 2.2.3 Cultural Orientations 2.2.4 Trust in Central Institutions (``Tone from the top´´) 2.2.5 Whistleblowing Culture 2.2.6 Knowledge of Criminal Liability and Attitudes Toward Corruption 2.3 Multivariate Model 2.3.1 Variable and Construct Analyses 2.3.2 Effects of Country Variables on Corruption Immunity in the Country Context 2.4 Conclusion References Chapter 3: Impact of Law and Market Mechanisms on CMS 3.1 Research Background 3.1.1 Legal Obligation to Implement a CMS in the Comparison Countries 3.1.2 International Legal Obligations to Implement a CMS 3.1.3 Significance of International Competition and the Capital Market 3.2 Results 3.2.1 Operationalization of a CMS 3.2.2 Diffusion and Quality of CMS in the Comparison Countries 3.2.3 Significance of a Stock Exchange Listing and International Law 3.2.4 Significance of Central Social Institutions 3.2.5 Factors Influencing the Implementation of a CMS 3.3 Conclusion and Outlook References Chapter 4: Internal Crime Preventive Effects of Corporate Culture and Compliance Management Systems 4.1 State of Research 4.1.1 Crime Preventive Effects of Compliance Management Systems 4.1.2 Compliance as a Competitive Advantage 4.1.3 CMS Effects on the Macrolevel 4.1.4 The Concept and the Meaning of Corporate Culture 4.1.5 Importance of Country Culture in Corporate Culture 4.1.6 Significance of Informal and Formal Social Control 4.1.7 Significance of CMS Versus Corporate Culture 4.2 Descriptive Results on Companies 4.2.1 Prevalence of Corruption in Companies 4.2.2 Corruption Immunity 4.2.3 Knowledge of Criminal Liability and Ethical Guidelines 4.2.4 Acceptance of the CMS 4.2.5 Attitudes Toward Corruption 4.2.6 Elements of Corporate Culture 4.2.7 Informal and Formal Social Control 4.2.8 Whistleblowing Systems in Companies 4.2.9 Culture of Whistleblowing 4.3 Results of the Multivariate Model for Companies 4.3.1 External Effects on Corruption Immunity in Company 4.3.2 Construct Description of Variables in Companies 4.3.3 Internal Relations in Companies 4.4 Conclusion References Chapter 5: External Crime Preventive Effects of CMS and Corporate Culture 5.1 State of Research 5.1.1 Untrustworthy Companies and a Rigid Market Economy 5.1.2 Companies as an Emancipatory Force 5.2 Results 5.3 Conclusion References Chapter 6: Corporate Social Responsibility 6.1 CMS on the Level of Legal Responsibility 6.2 Implementation of CMS 6.3 Integrity-Promoting Corporate Culture on the Level of Ethical Responsibility 6.3.1 Going Beyond Legal Requirements 6.3.2 Corporate Culture as a Demanding Challenge 6.3.3 High Added Value for Society and Global Development 6.4 Development of Company Culture 6.4.1 Culture and Self-Discipline 6.4.2 Developing a Culture 6.4.3 Interactions 6.5 A Practical Guide to Evaluating Company Culture 6.5.1 Need for Evaluation 6.5.2 Methods 6.5.3 Summary of the Benefits of Evaluating Culture References